Selected amounts at December 31 2003 from the Hay and Barnabas Company s informa

Selected amounts at December 31 2003 from the Hay and Barnabas Company s information system appear as follows:Cash paid employees for salaries and wages$300000Cash collected from sales customers$1850000Bonds payable$500000Cash$150000Common stock$60000Equipment$840000Prepaid insurance$30000Inventory$250000Prepaid rent$140000Retained earnings$130000Salaries and wages expense$328000Sales$2000000You are to complete each of the following tasks.Part AThere are five adjustments that need to be made before the financial statements can be prepared at year end. Show the effect of each of the following (a e) on the accounting equation.Part BIndicate the proper balance sheet classification of each of the preceding 12 financial statement items on the December 31 2003 balance sheet. If the account title would not appear on the balance sheet indicate the financial statement on which it would be found.